TAILIEUCHUNG - Lecture Framework of financial reporting - Lecture 29

The main contents of the chapter consist of the following: Statement of cash flows – IAS 7, adjustments to profit before tax, investing activities, financing activities, advantages of the statement of cash flows, interpretation of statements of cash flow, limitations of the statement of cash flows. | Revise lecture 29 1 Statement of cash flows – IAS 7 2 Statement of cash flows – IAS 7 Objective of the statement of cash flows IAS 7 To ensure that all entities provide information about the historical changes in cash and cash equivalents by means of a statement of cash flows. To classify cash flows (. inflows and outflows of cash and cash equivalents) during the period between those arising from operating, investing and financing activities. 3 Statement of cash flows – IAS 7 Usefulness of cash flow Users of financial statements need information on the liquidity, viability and financial adaptability of entities. Deriving this information involves the user making assessments of the future cash flows of the entity. Future cash flows are regarded (in financial management theory and increasingly in practice in large companies) as the prime determinant of the worth of a business. 4 Statement of cash flows – IAS 7 Although IAS 7 does not prescribe a format for statements of cash flows, it does require the cash flows to be classified into: Operating activities Investing activities Financing activities 5 Statement of cash flows – IAS 7 This classification may require a particular transaction to be shown partly under one heading and partly under another. For example, when the cash repayment of a loan includes both interest and capital, the interest might be shown as an operating activity and the capital element as a financing activity. 6 Statement of cash flows – IAS 7 The objective of the standard headings is to ensure that cash flows are reported in a form that highlights the significant components of cash flow and facilitates comparison of the cash flow performance of different businesses. 7 Statement of cash flows – IAS 7 One reason why the statement of cash flow was considered necessary is that final profit figures are relatively easy to manipulate. There are many items in an income statement involving judgement: Inventory valuation Depreciation Allowance for .

• Tài chính doanh nghiệp
• Financial Reporting
• Framework of financial reporting
• Lecture Framework of financial reporting
• Regulatory system
• Financial statements
• Reporting financial performance
• Reporting financial performance
• Financial accounting
• International financial reporting standards
• Financial reporting standards
• Merchandising operations
• Internal control
• Stockholders’ equity
• Financial statement analysis
• Financial information
• Economics of accounting information
• Computer associates international
• Financial reporting for leases
• Lease contracts
• Lessee accounting
• International financial reporting
• Conceptual framework
• Financial position
• Interpreting financial statements
• Consolidated financial statements
• Financial statements comprises
• Corporate financial reporting
• Group financial statements
• Sustainability reporting
• Reporting through XBRL
• Government accounting in india
• Regulatory framework
• Contingent liabilities